Czech Republic Payroll Services

At Bradford Jacobs, we navigate the administration of the Czech payroll system for you. We do the work, so you do not have to.

Czech Payroll

Successful Global Expansion depends on making the right moves from day one. This is essential for foreign companies operating payroll in the Czech Republic – an increasingly attractive market for companies looking to reach out globally.

Czech Republic flag with blue sky backdrop
Czech Republic flag with blue sky backdrop

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How We Can Help You

At Bradford Jacobs, our Employer of Record (EOR) platform provides reliable solutions for companies wishing to establish their presence in the Czech economy. From the first steps of setting up operations to ensuring compliance with the local payroll laws and regulations, we offer dedicated Czechia Payroll solutions that can be personalized to your requirements.

We aim to make business expansion easy. At Bradford Jacobs, we navigate the administration of the Czechia payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities. We do the work, so you do not have to. When expanding into a new country, you may encounter some challenges regarding payroll, but allow us to take the reins and answer any of your questions and concerns with our trusty guide on the payroll for the Czech Republic.

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in the Czech Republic to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in the Czech Republic. However, this does require hiring dedicated HR staff who understand Czech employment and compliance laws.
  • Czech Republic payroll processing company – If you are considering outsourcing, then working with a Czech payroll company will help in processing your payroll – but not when it comes to compliance.
  • Czech Republic payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in the Czech Republic. We take the administrative stress off your shoulders so you can focus on what you do best.

Companies expanding their operations into the Czech Republic (also known as Czechia) open up a wealth of opportunities for expansion throughout the European Union (EU) and even further east. However, challenges come alongside the potential benefits. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll regulations and income tax regulations are areas where you cannot afford mistakes. Bradford Jacobs’ Employer of Record (EOR) payroll solutions will navigate around these potential pitfalls effectively and efficiently by putting into action our comprehensive knowledge of tax and payroll regulations.

Running payroll in the Czech Republic demands in-depth knowledge of employment, payroll, and taxation laws – particularly as taxation laws changed in January 2021. Companies must deal with the General Financial Directorate (GFD) of the Czech Financial Administration for personal and corporate tax filing, the Czech Social Services Administration (CSSA) and remitting withheld contributions based on employees’ salaries. Outsourcing Czech payroll will streamline your operations, by dealing with the following:

  • Applying to the Ministry of the Interior for an Employee Card, if applicable, for a foreign national planning long-term residence in the Czech Republic.
  • Obtaining employees’ Tax Identification Number (TIN).
  • Remitting employees’ withheld deductions to the General Financial Directorate and the Social Services Administration.
  • Filing returns for the tax year, which runs from January 1 to December 31. Returns are due by April 1 of the next year, May 1 if filed electronically or July 1 if sent by an accountant or solicitor with their power of attorney if registered before April 1.
  • Advising on tax payments in advance for employees not taxed at source by their employer.

Additional payroll support includes:

  • Negotiating tax incentives for skilled expats.
  • Calculating employees’ monthly salary and sending their pay slips.
  • Submitting employees’ and employers’ monthly tax returns.
  • Creating and submitting your company’s annual accounts and year-end statements.
  • Creating payment schedules for salaries and any insurance contributions (if applicable).
  • Ensuring annual personal income tax returns are filed for you and your employees, where required.

The above checklist highlights why the vast majority of foreign companies expanding into the Czech Republic’s strictly regulated business environment hand their payroll to EOR providers such as Bradford Jacobs. By outsourcing payroll, your company complies with tax and employment regulations without risking sanctions or financial penalties for late or incomplete filing. You focus on your goals and expansion, free of any concerns over the payroll. Questions? We have the answers.

Foreign companies planning to set up a legal entity in the Czech Republic to run their own payroll must begin by choosing a unique company name and registering with the Czech Registry Court and the Commercial Register, to obtain a Tax Identification Number (TIN). Other requirements include:

  • Proof of business address and ownership or lease agreement for the office.
  • Details of business activities and relevant authorized trade certificates.
  • Notarized Memorandum and Articles of Association.
  • Proof of capital deposited in a bank, if applicable.
  • Signatures of shareholders, directors, and managers with an extract from the Criminal Registry proving clean record for each.

Companies running their own payroll must obtain employer social security and tax numbers, register to pay taxes, and register employees with social security authorities. The necessary steps include:

  • Applying to the Ministry of the Interior for an Employee Card, if applicable, for a foreign national planning long-term residence in the Czech Republic.
  • Obtaining employees’ Tax Identification Numbers (TIN).
  • Remitting employees’ withheld deductions to the General Financial Directorate and the Social Services Administration.
  • Filing returns for the tax year, which runs from January 1 to December 31. Returns are due by April 1 of the next year, May 1 if filed electronically or July 1. if sent by an accountant or solicitor with their power of attorney registered by April 1.
  • Advising on tax payments in advance for employees not taxed at source by their employer.

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